Featured Product

    BNM Issues Policy Documents on D-SIB and Capital Adequacy Frameworks

    February 05, 2020

    BNM issued policy documents on the framework for domestic systemically important banks (D-SIBs) and on the capital adequacy frameworks for both conventional and Islamic banks. The policy on D-SIBs sets out the assessment methodology to identify D-SIBs in Malaysia and contains the inaugural list of D-SIBs. Also published were the frequently asked questions and the response to feedback received to the policy consultation, along with the associated reporting template, reporting interpretations, and submission instructions. Additionally, the capital adequacy frameworks (capital components) for conventional and Islamic banks set out the approach to compute regulatory capital adequacy ratios as well as the levels of ratios at which a financial institution is required to operate. The policy documents came into effect on February 05, 2020.

    The policy document on D-SIB framework sets out the higher loss absorbency (HLA) and reporting requirements applicable to financial institutions, along with the assessment methodology employed to identify D-SIBs in Malaysia. BNM, at its discretion, may impose additional requirements and policy measures as deemed appropriate to manage risks posed by D-SIBs. The banking groups identified as D-SIBs based on the 2018 data and the assessment methodology set out in the policy document are as follows: 

    • Malayan Banking Berhad (Bucket 2)
    • CIMB Group Holdings Berhad (Bucket 2)
    • Public Bank Berhad (Bucket 1)

    In accordance with the D-SIB framework, the applicable HLA requirement for the identified D-SIBs ranges between 0.5% to 1.0% of risk-weighted assets, at the consolidated level. The HLA requirement for these D-SIBs will come into effect on January 31, 2021. Going forward, BNM will annually update the list of D-SIBs and publish this list with the release of the Financial Stability Review in the second half of each year.

     

    Related Links

    Effective Date: February 05, 2020

    Keywords: Asia Pacific, Malaysia, Banking, Islamic Banking, Basel III, Capital Adequacy Framework, D-SIBs, Reporting, HLA, BNM

    Featured Experts
    Related Articles
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571